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Payment Request Approvals

The person responsible for the budget being charged must approve department charges. Department heads may designate another individual to be responsible for approval of payments by contacting the Accounts Payable Coordinator at x2206. Supervisor approval is mandatory for personal reimbursements and college credit card payments. Individuals may not approve their own reimbursements, even if they are the budget manager of the budget being charged.

Contact our Grants and Contracts Office for approvals related to grant payments.

Payment Schedules

Vendor invoices and employee reimbursements are processed on a weekly basis. Invoices not requiring immediate payment will be held and paid according to the terms indicated by the vendor. For fully completed payment requests uploaded to OnBase by 5 p.m. on Friday, whose payment terms require immediate payment:

  • Checks will be mailed to vendors on Friday.
  • Direct Deposit amounts will be available on Friday.

Please note that checks in excess of $15,000 require two manual signatures and therefore require additional time to process. In most cases, these checks will be mailed/available the following Monday.

Check Requests and Direct Deposit

Due to the large volume of accounts payable payments processed, please submit payment requests as far in advance as possible. Since checks/direct deposits are processed weekly, special off-cycle payments will be processed only for emergencies, and must be approved by our controller. Learn more about check or direct deposit payments to employees or vendors.

Sales Tax

Although Davidson is exempt from Federal and State income taxes, we are required to pay North Carolina sales tax on all purchases. We are eligible for a refund of sales tax we have paid to North Carolina vendors. (Please note that we are not eligible for a refund of sales taxes paid to other states or paid on personal reimbursements.) For additional information please contact the Cash Management Coordinator at 704-894-2067 or the Accounts Payable Coordinator at 704-894-2206.

Out-of-State Vendors and Individuals

Personal services rendered by non-North Carolina individuals and companies (including non-U.S. vendors) are subject to a four percent withholding under North Carolina law. The North Carolina Department of Revenue (NCDOR) has deemed personal services in connection with the following events to be subject to this four percent withholding: 

  • Performance
  • Entertainment or athletic event
  • Speech
  • Creation of a film, radio or television program

This requirement is applicable to vendors who receive payments in excess of $1,500 from us in a calendar year. Please tell the Accounts Payable Coordinator in advance if the voucher is for a one-time payment under the limit. Please note that reimbursement for expenses is not subject to this withholding.

Non-U.S. citizens are also subject to this tax, unless they are covered by a tax treaty, in which case they are exempt. See the Non-U.S. Citizens  section for more information on tax treaties.

Payments should not be increased to offset this withholding. Please contact our Accounts Payable Coordinator at 704-894-2206, prior to making payment arrangements, with any questions concerning the withholding requirements for non-North Carolina recipients.

Visit the North Carolina Department of Revenue for more information.

New Vendors - Non U.S. Businesses or Individuals

Since some non-residents are prohibited from working in the U.S. and/or being paid compensation, it is imperative that you contact our Payroll Coordinator at x2461 or our Accounts Payable Coordinator at x2206 as soon as you are aware that you will be paying a non-U.S. vendor, even for reimbursement of expenses.  These regulations apply to Davidson students as well as external vendors.

We require all visitors (individuals) to complete a foreign national information form to assist our office in researching the payment. The information on this form will help us to determine whether payment is legal, and if so, which IRS forms must be completed. These forms may include Form W-8 series, Form 8233 or Form W-7.

Please be aware that if we are making a payment to a U.S. person, but we know this person is receiving the payment as an agent of a foreign person, we must treat the payment as being made to the foreign person, and follow all the applicable procedures.

In general, we must withhold tax of either 14 percent or 30 percent unless a tax treaty exists between the United States and the recipient's country of residence. This tax is in addition to the North Carolina four percent personal services tax, if applicable. If the vendor wishes to take advantage of a tax treaty, he/she must complete a Form 8233 and provide it to us in order to avoid withholding. This form must be mailed to the IRS 10 days prior to payment.

Please contact our Payroll Coordinator at 704-894-2461 or our Accounts Payable Coordinator at 704-894-2206 to obtain the forms, and to determine the tax consequences prior to making payment arrangements with these individuals. 


Unincorporated Vendors

Federal regulations require us to report to the IRS payments for services rendered by unincorporated vendors, such as speakers, performers, and contractors. These payments are reported to the IRS via IRS Form 1099-Misc.

We must have a tax identification number (TIN, Employer Identification number or Social Security Number) for each unincorporated vendor. The vendor is required by law to provide us with their correct TIN. We collect this information on the new vendor request/substitute W-9 form. No checks will be issued until this completed/signed form is obtained.

Payments must be made directly to the person/company providing the service. We will not issue checks to third parties.

New Vendors - U.S. Businesses or Individuals

After confirming that the vendor has not already been set up in Banner by reviewing the VendorLookup report in InsideDavidson Self Service Reports, send a new vendor request/substitute W-9 form to the vendor you wish to have added. The vendor can fax that form to the accounts payable coordinator at 704-894-2502 or email to new vendor requestPlease note that no checks will be issued until we have received a fully completed new vendor form.

Please also send an informational email new vendor request, so that we will anticipate receiving the new vendor form and will know who to notify once the vendor number is established. In this email, please include what we will be paying the vendor for, and how much, so that we will know whether the payment is subject to 1099 reporting and N.C. 4 percent withholding.

For non-U.S. vendors, refer to the section above for instructions related to non U.S. vendors.